CINCINNATI, April 03, 2020 (GLOBE NEWSWIRE) -- The Hillman Companies, Inc. (“Hillman” or the “Company”) announced today that the Company will extend the interest payment period on the Junior Subordinated Debentures held by the Property Trustee and, as a consequence, will temporarily defer the payment of cash distributions to holders of Trust Preferred Securities (Amex: HLM_P) beginning with the April 2020 distribution.

The Company is deferring the payment of distributions to the holders of Trust Preferred Securities to preserve liquidity due to the uncertainty of the financial impact of the COVID-19 pandemic. Pursuant to the Indenture that governs the Trust Preferred Securities, the Company can defer distribution payments to holders of the Trust Preferred Securities for a period not exceeding 60 consecutive months (the “Extension Period”). During the Extension Period, the Company is required to accrue with interest thereon at a rate of 11.6% per annum, compounded monthly, the full amount of all distributions payable, and such deferred distributions will be immediately payable by the Company at the end of the Extension Period. The Company will continue deferral of the distribution payments during this period of uncertainty with the COVID-19 pandemic and plans to resume distribution payments once economic and market conditions improve. As a result, the Company will accrue an aggregate of $.241667 per share which represents the amount that would otherwise be paid in the April 2020 distribution.

Founded in 1964 and headquartered in Cincinnati, Ohio, Hillman is a leading North American provider of complete hardware solutions, delivered with industry best customer service to over 38,000 customers. Hillman designs innovative product and merchandising solutions for complex categories that deliver an outstanding customer experience to home improvement centers, mass merchants, national and regional hardware stores, pet supply stores, and OEM & Industrial customers. Leveraging a world-class distribution and sales network, Hillman delivers a “small business” experience with “big business” efficiency.

For more information on the Company, please visit our website at http://www.hillmangroup.com
or call Investor Relations at (513) 851-4900, ext. 68284

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Source: The Hillman Group